A great number of world travelers utilize the Foreign Earned Income Exclusion to keep up to $102,100 in income out of the paws of the IRS (2017 tax year.)
For those who aren’t bonafide residents of another (non-US) country, this requires passing the Physical Presence Test (PPT) by being in a foreign country or countries for at least 330 days.
2017 is the first year we tried to pass the PPT, and getting it wrong by even one day could cost $20k or more in tax. Needless to say I wanted to get it right.
A few months ago the story of a Google employee who lived in a truck(*) in the company’s parking lot went viral. Rather than pay $2,000/month to share a 2 bedroom apartment with 3 other people, he chose to sleep in a 16-foot box truck.
I love it! Great choice! A few years of following the road less traveled will ensure a strong financial future. By not paying rent, an additional $24,000/year can be applied to debt and investments.
But what if there was a way to double that savings with one easy change? And in fact there is. (Hint: taxes.)
